NFL Collective Bargaining Agreement
Salary Cap Accounting Rules
Section 6(c)(iii)Valuation of Player Contracts
Notwithstanding any provision in a Player Contract to the contrary or when such payments are actually made, the following rules shall apply in determining the amount of a player’s Salary that is to be included in Team Salary in a particular League Year for purposes of the Salary Cap:
At the end of a season, if performance bonuses previously included in a Team’s Team Salary but not actually earned exceed performance bonuses actually earned but not previously included in Team Salary, an amount shall be credited to the Team’s Team Salary for the next League Year equaling the amount, if any, by which such overage exceeds the Team’s Room under the Salary Cap at the end of a season (i.e., increasing the Club’s Room in the next League Year). For the purposes of this Subsection, the Team’s Room at the end of the season shall reflect any charge to its Team Salary in the current League Year resulting from its election to Carry Over Room to the next League Year pursuant to Article 13, Section 6(b)(v). (For example, and without limitation, if a Club carries over 100% of its Room pursuant to Article 13, Section 6(b)(v), then for purposes of this Subsection the Club’s Room under the Salary Cap at the end of the season shall be zero and the entire amount by which performance bonuses previously included in Team Salary but not actually earned exceed performance bonuses actually earned but not included in Team Salary shall be credited to the Club’s Team Salary for the next League Year (i.e., increasing the Club’s Room in the next League Year, in addition to any Room Carry Over pursuant to Article 13, Section 6(b)(v)).